President’s Message | July 2023

Dear Readers,

Its happy to share my monthly message with my beloved members once again.

Let me start by reflecting on the work this term has done for the past year and the current month’s newsletter has synopsis and coverage of all the activity we have done during this period. The annual General Body meeting of KSCAA is scheduled on the 18th of August 2023 and we request members to participate in the process to guide, give feedback and suggest the committee in its journey.  Feedback is an indispensable tool for an organisation through which course correction action can be taken.

The month of July to September is particularly busy for practicing chartered accountants in the area of compliance and controllership. With the increasing tightening of the noose by regulators, it casts severe responsibility on us to execute our job well. The new government has presented its budget and the welfare schemes are all across the places, the prominence of them is seen by the schemes which are announced by them. Fiscal discipline is particularly a challenge to a growing country and comes with its merits and demerits, the elasticity of these has to be tactfully and intelligently used.

The association had submitted a representation to the Department of Cooperative to defer the change in reporting format which was made applicable from FY 2022-23 and has been favourably accepted. The department has postponed the implementation of the same by a year. This has got huge relief to the cooperative which has already completed the audit and were put in inconvenience for change in the midst of the year. ICAI has formally announced and released the new scheme and there are ample changes which can impact the profession of CA. Some of the changes are done to keep the students abreast with the latest changes and the demand of unheard nature by the industry. The SMP practitioner also needs to keep pace against the stiff competition, the very nature of practice built around the articles itself is questioned. A simple simulation of moving the articles out of the practice and considering the new talent would help us understand the financial impact we can have on these.

I also urge members to keep tab on some of the emerging trends happening in the world of technology, especially with AI getting closer to us, the trends on accounting is moving towards technology and before some of the desired become obsolete, it is easier and simpler to embrace them. Even the President of ICAI in his message put it “The advancements in technology and digital transformation like automation, artificial intelligence, and data analytics necessitate that the profession must equip itself with the requisite skills to navigate this evolving landscape. Technology can be used as a tool for decision-making activity, but it cannot be the decision maker itself. Collaborations of technology firms with academia can foster innovation and propel the profession forward. Diversification is need of the hour.” I fully endorse the view of engaging technology and academia in practice.

In closing, I would like to thank you all for your continued support of KSCAA. I am grateful for your dedication and commitment to the association. I believe that by working together, we can continue to foster an environment that nurtures professional growth, promotes knowledge-sharing, and advances the accounting profession I am excited to see what the future holds for KSCAA. With your continued support, I am confident that we can continue to make a positive impact on the accounting profession and the state of Karnataka.

Happy reading!

Yours’ faithfully,

CA. Pramod Srihari

President